DRAM price forecast to bounce back

By Kim Young-won
  • Published : Jun 16, 2016 - 11:42
  • Updated : Jun 16, 2016 - 11:42

[THE INVESTOR] Demand for DRAM memory chips has slightly picked up as more Chinese smartphone firms adopt the memory chips, according to market watchers. Some also predicted that the upward trend could continue for a while.

The increased demand has consequently driven up the price of DRAM chips.

The price of a DDR3 2Gb chip stands at $0.934, up from $0.888 several days ago, according to market research firm DRAMeXchange.

The main contributing factor for the price increase is that more Chinese smartphone-makers are adopting the memory chips with larger storage capacity, such as 6GB DRAM chips.

“From the supply perspective, memory chip makers are putting more focus on 3D NAND flash memory than DRAM chips so there is no need for oversupply issues,” an industry source said.

Whether the DRAM market can gain more traction in the future depends on the success of Apple’s next iPhone smartphone, probably iPhone 7, which is forecast to be released in September.

The price increase will become a boon to Samsung Electronics and SK hynix, which account for around 46.4 percent and 27.1 percent, respectively, of the global DRAM market in the first quarter this year,

The DRAM prices have dropped for nearly two years after the one for DDR3 4Gb reached $3.78 in September 2014. The price of the DDR3 4Gb decreased 4.58 percent to $1.25 in late May this year.

Kim Young-won (